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Best Auto Loan Rates with a Credit Score of 600 to 609


Mark B Huntley Headshot

By Mark B. Huntley, Esq.

Last updated 10/13/2019


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Summary:  A review of the best auto loan rates for new, used & refinanced vehicles based on credit scores between 600 to 609.

Your credit score will play a big factor if you are looking to get the best rates for an auto loan in 2019.

According to the Huffington Post  about 10% of Americans have a credit score between 600 and 609 which is categorized as ‘Fair’ or ‘Non-Prime’. 

Current Auto Loan Interest Rates 

Current Dates

60 Month new car

48 Month New Car

36 Month Used Car

10/9/2019

4.63%

4.60%

5.12%

10/2/2019

4.61%

4.57%

5.15%

9/25/2019

4.61%

4.57%

5.15%

9/18/2019

4.62%

4.58%

5.13%

9/11/2019

4.62%

4.58%

5.13%

9/4/2019

4.58%

4.54%

5.09%

8/28/2019

4.63%

4.58%

5.14%

8/21/2019

4.63%

4.59%

5.16%

8/14/2019

4.63%

4.59%

5.16%

8/7/2019

4.66%

4.60%

5.17%

7/31/2019

4.66%

4.60%

5.17%

Car loan interest rates provided by Bankrate.

Still, even with a credit score around 603, you will have plenty of auto loan options, albeit, at a slightly higher interest rate than a score closer to 675.

Regardless of if you are looking to purchase a truck, daily driver or even a hybrid car, we can help you find the best interest rates for both new or used auto loans. 

Disclaimer: "Credit score" refers to FICO score in this article.  If you have a different score (i.e. VantageScore), that does not likely equal your FICO.  For example, a 604 VantageScore could equal any FICO score... 601, 604, 608?  Who knows?  You can get your FICO score here.

New, Used, and Refinanced Auto Loan Rates for 600 to 609 Credit Score

Best Automobile Loan Rates For A New Car - 600 to 609 Credit Score

Look, let's be honest. 

You are going to see advertisements for new car auto loan rates for as low as 1% or 2%.

But, if we are being honest, those rates are for people with credit scores in the 800's, not for people with a credit score closer to 605. 

Those super low rate advertisements are the classic bait and switch, a type of deceptive advertising that will end up costing you way more money. 

Below we will provide you with an accurate estimate of what your monthly payments could be based on the amount you will need to borrow to purchase that new car. 

These estimates are for the best interest rates available for someone with a credit score around 606.

Lenders charge higher interest rates for loans to people who statistically are a bigger credit risk.

best rates for car loans with a credit score of 600 601 602 603 604 605 606 607 608 609 auto loan financing

Your credit score is used to assess that risk.  

The Consumer Financial Protection Bureau (CFPB) is a government agency that has oversight over the big three credit agencies, Equifax, Experian, and TransUnion.

In a recent case study, the CFPB found that the default risk for people with a credit score between 600 to 609 is 20%. 

In comparison, consumers with credit scores of 800 and above default on their loan obligations less than 1% of the time.

The sample auto loan monthly payment charts include the best rates for non-prime or fair credit borrowers with credit scores in the low 600's, such as  601, 606, & 607.

600 auto loan rate car loan interest rate with 600 credit score auto loan rate

Estimated Monthly Payments For New Car Loan Of $20,000 by Credit Score

Credit Score

3 Year 

(36 months)

5 Year

(60 months)

7 Year

(84 months)

600

$622

$401

$307

601

$622

$401

$307

602

$622

$401

$307

603

$622

$401

$307

604

$622

$401

$307

605

$622

$401

$307

606

$622

$401

$307

607

$622

$401

$307

608

$622

$401

$307

609

$622

$401

$307

*Sample Quote For Credit Scores of 600 to 609.  Single digit credit score changes don't change the payment, so a 601, 605, and 606 score should all cost the same.   Assumes $2,000 down payment.  Scores sourced from Nerd Wallet site and are accurate as of 6/12/19.  All loan payment amounts are based on a new car loan APR interest rate of 7.52% for non-prime borrowers with a credit score of 600 to 660.  The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options for new, used, or refinancing.  Don't forget to ask about their auto  loan payment terms that cover; 1 year (12 months), 2 years (24 months), 4 years (48 months), 6 years (72 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.  

Soft credit inquiry.  Up to 4 offers in minutes.

601 car loan rate auto loan interest rate with 601 credit score car loan rate

Estimated Monthly Payments for Other New Car Loan Amounts (10k - 30k)

New Auto Loan Amount

3 Year 

(36 months)

5 Year

(60 months)

7 Year

(84 months)

$10,000

$311

$198

$153

$15,000

$467

$299

$230

$20,000

$622

$400

$307

$25,000

$778

$501

$384

$30,000

$933

$602

$460

Sample Quote For Credit Scores Of 600, 601, to 606, & 608: Assumes $2,000 down payment.  Scores sourced from Nerd Wallet site and are accurate as of 6/12/19.  All loan payment amounts are based on a new car loan APR interest rate of 7.52% for non prime borrowers with a credit score of 600 to 660.  The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options for new, used, or refinancing. Don't forget to ask about their car loan payment terms that cover; 1 year (12 months), 2 years (24 months), 4 years (48 months), 6 years (72 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.  

Soft credit inquiry.  Up to 4 offers in minutes.

602 auto loan rate car loan interest rate with 602 credit score auto loan rate

Top Used Auto Rates - 600 to 609 Credit Score

I think a lot of people wonder what a good interest rate is on a used car?

We see incredible offers online and on TV for new car loan rates but, now that I think about it, I don't think I ever see used auto rates advertised. 

Used car loan rates are usually heavily determined by your credit score. 

Higher credit scores in the 825's will qualify for the lowest interest rate loans. 

You don’t have to have a good credit score to get the best auto loan rates.

An Illinois government-commissioned report found residents in Riverdale, a suburb of Chicago, have a fair credit score average of 605, but still qualify for multiple used automobile loan options.

While we can help you get the best car and truck loan rates for a used car, we cannot help you choose the perfect vehicle. 

Since you have a credit score around 605 or 606, buying a used car makes a lot more sense from a financial standpoint.

Be Careful!

Buying a used car has its risks. That's why you want to always check the vehicle's history. You can run a vehicle history report on sites like Carfax with the vehicles Vin number. If the dealer or seller will not give you the Vin #, consider this a major red flag and move on to another vehicle.

You will most likely pay less interest over the term of your loan because used vehicles tend to be less expensive than new ones.

But, that is only the case if you purchase a good used car. 

Keep in mind that if the dealer or seller will not give you the Vin #, consider this a major red flag and move on to another vehicle.

603 car loan rate auto loan interest rate with 603 credit score car loan rate

My Auto Loan consistently provides consumers with the best rates in the states!

They provide you with four loan offers in under 2 minutes for  filling out a quick, free, no-obligation application.

If your credit score is in the 600's, you should qualify for a non-prime APR rate, which will be higher than someone with a 700 or 800 credit score.  

Used Auto Loan Amount

3 Year 

(36 months)

5 Year

(60 months)

7 Year

(84 months)

$10,000

$324

$214

$168

$15,000

$486

$321

$252

$20,000

$649

$428

$336

$25,000

$811

$535

$419

$30,000

$973

$642

$503

Sample Quote For Credit Scores Of 601, 602, to 606, & 607: Assumes $2,000 down payment.  Scores sourced from Nerd Wallet site and are accurate as of 6/12/19.  All loan payment amounts are based on a used car loan APR interest rate of 10.34% for non prime borrowers with a credit score of 600 to 660.  The loan terms included in this chart are for 3 years (36 months), 5 years (60 months), and 7 years (84 months). However, speak to your lender about additional loan options, including mortgage loan terms that cover; 1 year (12 months), 2 years (24 months), 4 years (48 months), 6 years (72 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.  

Soft credit inquiry.  Up to 4 offers in minutes.

604 auto loan rate car loan interest rate with 604 credit score auto loan rate

Best Vehicle Refinance Rates

Say you have a credit score of 603 or 608...

You can refinance with this score!

A lot of people miss out on an opportunity to save themselves some money by not considering auto refinancing with a credit score over 600.

The interest rate you initially locked in at the time you purchased your car was based on your credit score at that time and the Federal prime interest rate.

Do not apply for a refinance car loan if your credit score is below 600.

If either of those two factors has changed in your favor, you may be able to refinance with a lower interest rate and save a bunch of money and interest by replacing your old high-interest rate loan.

Depending on the APR of your original loan, you may also be able to keep the original loan payment amount, but cut multiple months or even a year off of the length of time you will have to pay off your loan.

Keep in mind that if your credit score is 600 or below, you probably will not be able to find a better interest rate by refinancing and the new loan will cost you more in interest than the original one. 

Please note that while we're talking about some specific credit scores over 630 in this article, single digits shouldn't impact your refinance decision.  In other words, whether your score is 603 or 604, or even on the higher end of our range like 609, your resulting rates will likely be very similar, and you should definitely consider auto loan refinancing.

605 car loan rate auto loan interest rate with 605 credit score car loan rate

Refinance Auto Loan Amount

2 Year 

(24 months)

4 Year

(48 months)

6 Year

(72 months)

$10,000

$432

$224

$154

$15,000

$648

$335

$231

$20,000

$864

$447

$308

$25,000

$1,080

$559

$386

$30,000

$1,296

$671

$463

Sample Quote For Credit Scores Of 600, 602, to 604, & 607: Assumes no down payment.  Scores sourced from MyAutoLoan.com and are accurate as of 6/12/19.  All loan payment amounts are based on a refinance car loan with an APR interest rate of 3.09% for non prime borrowers with a credit score of 620 to 699.  The loan terms included in this chart are for 2 years (24 months), 4 years (48 months), 6 years (72 months). However, speak to your lender about additional  refinancing loan options, including loan terms that cover; 1 year (12 months),  3 years (36 months), 5 years (60 months), and 7 years (84 months), 8 years (96 months), 9 years (108 months), and 10 years (120 months). This is not an offer for a loan or a loan approval. Rates and stipulations change by state, income, credit score, and a variety of other factors. For informational purposes only.  

Soft credit inquiry.  Up to 4 offers in minutes.

Who has the Best Auto Loan Rates? Credit Unions, Banks, or Online Lenders

Attempting to make sense of who has the best automobile rates can be a confusing task.

When you are thinking about getting an auto loan, it is normal to think of your Credit Union or Bank.

I feel a sort of devotion to my daily bank that I trust with all of my hard earned money.

In fact...

In certain situations, going directly through your Credit Union or Bank can be your most logical option and probably even save you a few dollars.

But, … Did you know?

Credit Unions and Banks have a limited number of loan options they can offer and some find it difficult to match the best online lenders rates.

Another advantage of online lenders is that you don’t have to go to the financial institution and wait in line to talk to the loan officer.  

Or, you can get four offers inside of two minutes by filling out a short, one-page application with MyAutoLoan.com.

It makes sense that you feel more comfortable speaking with your Bank or Credit Union about an auto loan.

But doesn’t it make more sense to have four free auto loan offers in your hand when you go to speak to them?

You will be more informed of what is available to you and possibly even use those offers to negotiate a better deal with your Bank or Credit Union.

Be Careful!

Be careful if you get an auto loan from a Credit Union or Bank that you have a checking, savings, or CD account with. Some financial institutions require you to sign a document allowing them to take payment without your permission if you do not pay on-time. 

If your financial institution can’t beat one of the offers from MyAutoLoan.com then you consider them.

Here’s the deal about MyAutoLoan.com…

They provide you with four loan offers in under 2 minutes for  filling out a quick, free, no-obligation application.

It is very common to obtain a pre-approval auto loan before choosing your car.

In fact, you are able to get the best rates possible because you can shop around and find the best deal before even looking for the car.

606 auto loan rate car loan interest rate with 606 credit score auto loan rate

If you already have found the car you won’t have the time to find the best rates.

Classic putting the cart before the horse move!

Always get pre-approved for your auto loan to get the best rates.

In fact, according to U.S. News...

“Having the entire car-buying process neatly bundled into one transaction...makes purchasing easy. However, it’s a horrible way to buy a car if you want to get a good deal. It’s a common dealer trick to keep you focused solely on the monthly payment while they manipulate the trade-in value, vehicle price, and car loan terms. In most cases, they make a significant portion of their profit on the sale by marking up the cost of the car loans you are offered.”

 Typically the better financial move is to shop for the best auto rates online, get a pre-approval letter, and take that to the dealer where you want to buy your car.

Soft credit inquiry.  Up to 4 offers in minutes.

best rates for auto loans with a credit score of 600 601 602 603 604 605 606 607 608 609 car loan financing

Best Online Auto Loan Rates By State

Whether you live in California or Texas, we have found the best online auto loans by state for you. 

If you want to get the best possible car loan rates in your state...

Simply click on the state that you live in below and  fill out a quick, free, no-obligation application to start driving your new car! 

5 Non-Credit Factors that Affect Your Monthly Payment

Multiple factors play a role in determining a good auto rate for new, used and refinance loans. 

Even if you have a credit score of 608, these five non-credit score related factors will have an affect on your monthly car or truck payment. 

Income & Debt-to-Income

Lenders will want to make sure that you have enough money to pay your vehicle loan each month. 

To determine this, they look at how much income you make each month and how much are your expenses. 

They used the word, debt, instead of expenses, and call the combination of the two, your debt-to-income ratio

Most lenders like to see your debt-to-income (DTI) around 40% including your new monthly auto payment. 

607 car loan rate auto loan interest rate with 607 credit score car loan rate

3 Steps To Calculate Debt-To-Income Ratio

1.

Add up all of your monthly bills including rent, car payments, student loans, utilities, etc.

2.

Divide your total monthly bills by your total monthly income

3.

The resulting number is your debt-to-income ratio

For example:

If I have $5,000 in monthly income and $2,000 in monthly expenses and I divided the monthly expenses 2k by monthly income 5k, I would have a 40% DTI. 

There are multiple debt-to-income ratio calculators on the internet.  I like the free one provided by Credit.com here

Soft credit inquiry.  Up to 4 offers in minutes.

The “Right” Credit Score

I'm assuming you think that you have a FICO credit score in the 600 to 609 range. 

You may have a credit score of 603 but it may not be a FICO score and your true credit score could be much higher! 

A while back, the three big credit agencies; Experian, TransUnion, and Equifax, joined forces (think of the Empire in Star Wars) created a new credit scoring model they called VantageScore. 

There credit scoring model doesn't produce the same results as the FICO model because it is newer and weighs consumer's credit histories a bit differently. 

But, here's the thing...

Most lender's don't use a Vantage credit score when determining the best rates for an auto loan. 

608 auto loan rate car loan interest rate with 608 credit score auto loan rate

They used the FICO credit scoring model, in fact, over 90% of lenders use FICO to obtain your credit score and determine your interest rate. 

However, most FREE CREDIT SCORES are VantageScores. 

So, if you think you have a credit score around 602, you may actually have a FICO credit score  of 675, who knows?

The only way you would know is to go to MyFICO and get your FICO credit scores for Experian, Equifax, and TransUnion. 

It could save you thousands of dollars in a lower interest rate loan! 

Soft credit inquiry.  Up to 4 offers in minutes.

Employment

Grammy award-winning Jennifer Hudson is from Englewood a neighborhood in Chicago whose average credit score is 607

Jennifer Hudson is well known for her hard work ethic and has stuck with a singing career for many years now. 

Lenders want to loan money to people with steady incomes.

The most common way borrowers show that they have a consistent income is by the length of time they have been employed at one location. 

People who jump from job to job regularly, have not been able to rely on one specific jobs income for a long period of time and therefore, by definition, do not have a steady income. 

Down Payment

When you purchase a new or used car or truck you are going to have to make a down payment.

It doesn't matter whether you have a 775 credit score or a 607.

Lenders want to make sure that you have some skin in the game and generally require you to make a 20% down payment on the purchase of a new car.

Used vehicles don't depreciate their value as fast as a new automobile and because of this, lenders usually only ask consumers to make a 10% down payment on a used car.

However, if you have a trade in you can apply the value of the vehicle you are trading in to the down payment. 

 If you are looking to refinance your vehicle than you lucked out because lenders do not typically ask for a down payment. 

Soft credit inquiry.  Up to 4 offers in minutes.

Improving your credit score

With a credit score between 600 and 609, you are going to qualify for non-prime loans at a much higher interest rate than if you were able to increase your credit score to 700+.

Because you are so close to receiving prime credit score rates it may make sense to consider spending 30, 60, or 90 days building your credit

Additional Auto Loan Resources




Disclaimers:

Annual Percentage Rates (APR), loan term and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers' credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.

The time and money spent would put you in a lower risk bracket and open the doors to much more financial freedom and better opportunities.

You can start by checking out our 90 day Credit Sprint for a personalized credit building plan.  I know it works because I personally increased my credit score over 100 points in under 60 days.

609 car loan rate auto loan interest rate with 609 credit score car loan rate

Another option to get a vehicle loan with a lower interest rate would be to ask a family member to co-sign on the loan.

The co-signer would become the primary borrower and you would be the secondary borrower.

They would be responsible for making the payments on the loan if you failed to do so, but you would qualify for an auto loan based on their credit score and not yours.

If you know someone with a good credit score, it may not hurt to ask them to be your co-signer.  

Soft credit inquiry.  Up to 4 offers in minutes.

Take Action!

Finding the best auto loan rates can save you thousands of dollars over the life of your car loan. 

There are multiple factors we have reviewed that determine how to get the best interest rates for a vehicle loan.

The first step is to fill out a quick, free, no-obligation application and start your pre-approval process to buying that car of your dreams today! 

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